Allon files preliminary shelf prospectus

VANCOUVER, Nov. 22, 2012 /PRNewswire/ - Allon Therapeutics Inc. (TSX: NPC) has filed a preliminary short form base shelf prospectus
(the "Shelf Prospectus") with the securities commissions in each
province and territory of Canada (other than Quebec).

Allon's pivotal phase 2/3 clinical trial is evaluating lead
neuroprotective drug candidate davunetide as a potential treatment for progressive supranuclear palsy (PSP), a rapidly progressing and fatal degenerative brain disease. The
Company is on track to release top-line data from the clinical trial in
the second half of December 2012.

Matthew J. Carlyle, Allon's Chief Financial Officer, said positive data
from the trial could position Allon to seek regulatory approval in the
PSP market, estimated to be $700-million.

"We believe that it is important to maintain corporate finance
flexibility," Carlyle said. "The prospectus is intended to help
facilitate Allon's ability to efficiently access the capital markets,
including in the event that the davunetide clinical trial is
successful."

The Shelf Prospectus, when made final, will enable the Company to offer
up to $50 million of common shares, common share purchase warrants,
units consisting of common shares and whole or partial common share
purchase warrants, preferred shares, debt securities and/or
subscription receipts entitling the holder to acquire, upon the
satisfaction of certain release conditions and for no additional
consideration, common shares, warrants, units or preferred shares
during the 25-month period that the Shelf Prospectus, including any
amendments thereto, remains effective. Securities may be offered
separately or together, in amounts, at prices and on terms to be
determined based on market conditions at the time of sale and set forth
in an accompanying prospectus supplement.

About Allon
Allon Therapeutics Inc. is a clinical-stage biotechnology company
focused on bringing to market innovative central nervous system
therapies. Allon's lead drug davunetide is proceeding in a pivotal clinical trial in an orphan indication, progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and
Drug Administration (FDA). The trial is complete and on track to
analyse the data and release top-line results during the second half of
December 2012. This pivotal trial is based upon statistically
significant human efficacy demonstrated in patients with amnestic mild
cognitive impairment, cognitive impairment associated with
schizophrenia, and in positive biomarker data.

The Company is listed on the Toronto Stock Exchange under the trading
symbol "NPC".

Forward Looking Statements
Statements contained herein, other than those which are strictly
statements of historical fact may include forward-looking information.
Such statements will typically contain words such as "believes", "may",
"plans", "will", "estimate", "continue", "anticipates", "intends",
"expects", and similar expressions. While forward-looking statements
represent management's outlook based on assumptions that management
believes are reasonable, forward-looking statements by their nature are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, events or developments to be
materially different from any future results, events or developments
expressed or implied by them. Such factors include, among others, the
inherent uncertainty involved in scientific research and drug
development, Allon's early stage of development, lack of product
revenues, its additional capital requirements, the risks associated
with successful completion of clinical trials and the long lead-times
and high costs associated with obtaining regulatory approval to market
any product which Allon may eventually develop. Other risk factors
include the limited protections afforded by intellectual property
rights, rapid technology and product obsolescence in a highly
competitive environment and Allon's dependence on collaborative
partners and contract research organizations. These factors can be
reviewed in Allon's public filings at www.sedar.com and should be considered carefully. Readers are cautioned not to place
undue reliance on such forward-looking statements. Similarly, nothing
in this press release is meant to promote a pharmaceutical product or
make a regulated claim of efficacy.